KUALA LUMPUR, Dec 21 (Reuters) - Malaysia Building Society Bhd (MBSB) will begin merger talks with Asian Finance Bank Bhd (AFB) in its third attempt in about two years to convert into a full-fledged Islamic lender.

The non-banking lender said in a bourse filing on Wednesday that it had received a letter from Bank Negara Malaysia in which the central bank said it had "no objection in principle for MBSB to commence negotiations with the existing shareholders of AFB".

The central bank requires that the negotiations be completed within six months, MBSB said.